Hua Xizi was pushed to the wind, the product is more expensive than gold?

Hua Xizi is on fire, only this time is different, it was brought by the well-known blogger Li Jiaqi.

In a recent live broadcast, Li Jiaqi supported Hua Xizi when bringing goods, saying that the price of Hua Xizi had not changed much, and angrily scolded consumers in the live broadcast room, although Li Jiaqi apologized many times afterwards, but it seems that netizens are angry.

With Li Jiaqi's remarks rushing to the hot search, Hua Xizi was also pushed to the cusp of public opinion, and netizens launched a fierce discussion around the price of Hua Xizi's eyebrow pencil of 79 yuan.

In recent years, Hua Xizi has raised its price many times, which also reflects the pressure of rising costs and market changes.

Hua Xizi eyebrow pencil, is gold expensive?

Hua Xizi eyebrow pencil 79 yuan a piece, is this price expensive? Li Jiaqi said in the live broadcast room that the price of Hua Xizi has not changed much over the years, but for most migrant workers, this price is really not cheap. To calculate an account, take Hua Xizi's 69 yuan eyebrow pencil as an example, and the approximate weight of an eyebrow pencil is 0.07 grams.

In this way, the price of an eyebrow pencil per gram is about 980 yuan, equivalent to the price of 1.5 grams of gold, the price has far exceeded gold, and it is precisely because of this that netizens have come to the conclusion that Hua Xizi is "more expensive than gold".

Of course, Hua Xizi and gold are different and cannot be generalized, but this comparison can be used as a reference. With Li Jiaqi's inappropriate remarks, Hua Xizi quickly came out of the circle, and a large number of netizens commented, "1 Hua Xizi eyebrow pencil is about 79 yuan", and they have used Hua Xizi as the unit of volume price to compare their salary level.

"Hua Xizi responds to the expensive eyebrow pencil", "Hua Xizi fights the exclusive currency unit for workers", "How expensive is Hua Xizi", "Hua Xizi eyebrow pencil can buy two grams of gold per gram of more than 980", "Hua Xizi responds to Li Jiaqi's high commission on the Internet", etc., around the expensive price of the product and the relationship with Li Jiaqi and other topics rushed to Weibo hot search.

Although these are the ridicule of netizens, they can also explain a lot of problems. Why does Li Jiaqi say that the price of Hua Xizi is not expensive? Hua Xizi's eyebrow pencil is priced at 79 yuan in 2020, and it is buy one get one free, while the usual price is 89 yuan buy one get one free. After entering Li Jiaqi's live broadcast room, it was changed to 79 yuan to buy one and get two free, so Li Jiaqi bluntly said that "79 yuan is really not expensive, domestic products are difficult".

Regardless of whether Hua Xizi eyebrow pencil is expensive or not, I believe that most netizens who like beauty will have a choice in their hearts, aside from the price of eyebrow pencil, from the perspective of the industry, it is not difficult to see that the profit of the eyebrow pencil industry is indeed considerable.

According to public media reports, combined with the major eyebrow pencil brands on the market, the cost price of ordinary eyebrow pencils priced between 49-69 yuan is only about 4 yuan, and some insiders said that the cost price of domestic eyebrow pencils below 100 yuan will not exceed 10 yuan.

With the help of the rise of online, there have been many price adjustments

Hua Xizi is a domestic beauty brand born in Hangzhou, which was not established for a long time, but it has quickly become a domestic beauty head brand in just six years since its establishment, and currently has considerable sales in overseas markets such as Japan and the United States, covering more than 100 countries and regions.

After the establishment of Hua Xizi, it once faced a dilemma in sales channels, and then opened up sales channels through online e-commerce channels, in this process, the blogger Li Jiaqi contributed a lot, with the deepening of cooperation between Hua Xizi and Li Jiaqi, Li Jiaqi worked hard for Hua Xizi in the live broadcast room.

Relying on Li Jiaqi's strong personal IP traffic advantage, Hua Xizi's sales continued to rise, and before and after "Double 11", Li Jiaqi's live broadcast room accounted for nearly 80% of Hua Xizi's total traffic, and more than 64% of the transaction volume came from his live broadcast room.

In the 2019 "Double 11" shopping festival, the sales volume of Hua Xizi reached 700,000 boxes, and the GMV on the day of "Double 11" reached 220 million yuan. Last year's "Double 11", in the Tmall makeup TOP10 list, Hua Xizi ranked first in the whole network, and the GMV reached 350 million yuan. Huaxizi loose powder became the first in sales on the whole network.

In this process, it is also a fact that Hua Xizi constantly adjusts prices. According to public data information, in December 2018, the original price of Huaxizi Luo Daisheng Flower Eyebrow Pen was about 56 yuan, and by June 2020, the price of this product has risen to 62 yuan, and the price after the discount is 54 yuan, and the original price has increased by 6 yuan.

Of course, the price change is also due to the iterative update of the product, the early eyebrow pencil product refill is thicker, with the continuous improvement and progress of the process, the refill is constantly upgraded, the shape is thinner and the weight is smaller. In fact, not only Hua Xizi, many beauty brands are constantly adjusting prices, which is probably also a response to market changes.

Anchors have high commissions and brands make less money

As mentioned earlier, the price of Hua Xizi is constantly adjusting, and the beauty industry is also more profitable, so is a beauty brand like Hua Xizi making money?

After Li Jiaqi's remarks rushed to the hot search, he himself also stood on the cusp, and topics such as Li Jiaqi's income also rushed to Weibo hot search, causing a lot of attention and discussion, with entries as "more than 20% of Hua Xizi's revenue comes from Li Jiaqi" and "Hua Xizi responded to Li Jiaqi's high commission on the Internet", it is not difficult to see that the outside world is quite concerned about how much commission Li Jiaqi receives from Hua Xizi.

Previously, some media reported that the average rebate rate for live bloggers in the beauty industry is 20%, while Hua Xizi's rebate is relatively high. Of course, Hua Xizi has responded that the cooperation rebate rate with Li Jiaqi belongs to the industry average, and the information of high rebate is not a rumor.

However, as far as the overall industry is concerned, it is already a fact that the beauty industry has a high commission for bringing goods, as we all know, beauty brands enter the live broadcast room and cooperate with expert bloggers, and the profit model of bloggers is usually to charge a fixed pit fee, and then extract a certain sales commission from it.

Beauty brands have always had higher commissions than other industries, which is basically an indisputable fact in the industry, and in terms of the industry, the proportion of commissions taken by beauty products is generally more than 20%. Of course, in general, the proportion will not exceed 35%.

You know, the 20%-35% rebate rate is already a high state, like the rebate rate of food products is mostly 10%-20%, compared with beauty products has been relatively high, so that some beauty brand practitioners directly said, "Entering the live broadcast room is to lose money and make money, almost no profit." ”

But entering the live broadcast room and working with bloggers is a step that beauty brands have to take. The advantages of Hua Xizi and Li Jiaqi's cooperation are obvious. At the beginning of last year, in the annual list released by Douyin e-commerce, Hua Xizi led the annual beauty list.

Of course, this achievement is inseparable from Li Jiaqi's support in the live broadcast room. Of course, just as the so-called "success is also Xiao He, defeat is also Xiao He", this time Li Jiaqi's inappropriate remarks also pushed Hua Xizi to the cusp, as for how it will develop later, it depends on the attitude of consumers. However, as a well-known domestic brand, we still hope to see Hua Xizi develop better and better.

Resources:

1. "Eyebrow pencil is more expensive than gold? Rebate up to 80%? Hua Xizi: The rebate rate of cooperation with Li Jiaqi is the industry average". The Paper.

2. "Threatening to "break the price ceiling" Where is Hua Xizi's confidence". China Business Daily.

3. "79 yuan Hua Xizi eyebrow pencil is not expensive". Beijing Business Daily.